Auto parts maker Hota Industrial Manufacturing is investing $72 million to establish a facility in Santa Teresa, New Mexico, according to a June 28 state release.
Taiwan-based Hota produces automotive gears for EV makers such as Tesla. Construction on the new plant is anticipated to begin next year and will create 350 jobs with the possibility of future expansion over the next decade, according to the release.
Hota is one of the largest automotive gear transmission component companies in Taiwan with nearly 20 million transmission gears produced annually, the company said on its website. It has four manufacturing plants in Taiwan and one in China.
Hota’s Santa Teresa plant will be located near the town’s port of entry on the “Borderplex,” a metro area comprised of two states and one country: El Paso, Texas; Juarez, Mexico; and Las Cruces and Doña Ana County, New Mexico.
One of the primary crossings between the U.S. and Mexico, the Santa Teresa Port of Entry is also the first land port without a bridge structure and not limited by space or weight requirements, making it a key transport location for El Paso’s and Juarez’s industrial regions.
Its location is the reason why Hota chose New Mexico for its manufacturing facility, in addition to the town’s workforce and logistical advantages, Economic Development Cabinet Secretary Alicia J. Keyes said in the release.
“Hota is one of several new companies who see New Mexico as a solution to fortify and diversify their global supply chain,” Keyes said in a statement.
The company said it had an “aggressive expansion plan” due to the increasing demand for EVs, Nikkei Asia reported in 2021. The auto part maker said it wanted to establish three more factories in Taiwan and triple its production, which would allow the company to supply parts for up to two million EVs by 2025.
The establishment of an auto parts plant is a new development in New Mexico’s manufacturing industry, which has been primarily focused on computer and electronic manufacturing, as well as the petroleum and food and beverage sectors.